Debt Factoring Information & Resources
Debt Factoring is a service that releases the cash that is tied up in your outstanding sales invoices and provides you with help collecting in those outstanding debts. Bad debt protection is an optional extra.
Factoring is explained in detail below with further information and resources such as case studies and articles that explain the benefits and how to compare quotations and prices. To request a no obligation UK wide search for quotations follow this link:
REQUEST A FREE FACTORING QUOTATION SEARCH
Who Cashflow Acceleration Are:
Cashflow Acceleration Limited offer a UK wide free, independent quotation search service for factoring. In many cases we have saved clients at least 33% of the cost of their existing or quoted debtor factoring facility and we can help you find a cost effective facility that will meet your requirements for service quality.
Email: info@cashflow-acceleration.co.uk or telephone: 01892 784183
What Is Factoring - How Does It Work?:
Debtor factoring (sometimes called debt factoring) is a financial product (or facility) and a form of invoice finance. It is a working capital solution whereby a factoring company (also known as a factor) will provide you, their client, with up to 95% (this can be 100% in some cases) of the value of your outstanding sales invoices (also known as accounts receivables, or your sales ledger) e.g. with outstanding unpaid sales invoices of £120,000 an early payment of 85% could release an initial cash injection of over £100,000. This releases working capital that will improve the cash flow of your business enabling you to pay creditors and use that cash for expansion and growth. In some cases overpayments in excess of that value can be provided.
The factor will then continue to provide you with up to 95% of the value of new sales invoices, normally within 24 hours of you raising them. The other 5% of the value of your sales invoices is passed onto you when the customer (also known as a debtor) pays.
In addition, the debt factoring company can undertake the task of chasing and collecting your outstanding unpaid debtor sales invoices, saving you time and money. With Confidential Factoring the factoring company will chase customers in the name of your company. The factoring company will send out debtor statements, chasing letters (also known as dunning letters) and will also contact debtors by telephone. Factoring companies are experts in this area and so they are likely to be able to improve the speed at which your sales invoices are paid through effective collections techniques, further improving your cash flow. The factor may also be able to provide these services in respect of export sales.
If you are concerned about bad debts, Cashflow Acceleration can introduce you to a factor or factors that will also provide you with up to 100% bad debt protection and specialist factoring services for small businesses even single debtor factoring with no minimum turnover or financial criteria and services for phoenix businesses.
How Much Could You Raise?
Find out how much cash you could raise with our free instant online factoring cash calculator.
The Cost of Factoring
The costs for your business depend upon the size and nature of your business but we have put together some illustrative examples of factoring costings.
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Help With Further Resources:
For information about the cost of factoring please click the link below or contact us for specific quotations and advice. Also shown below are some articles and factoring case studies:
Further Case Studies
Article - Understanding & Comparing Factoring Quotations
For further information about Invoice Discounting follow this link
Watch the full length video explanation of factoring here.
